Emerging global trade arrangements and preferential market access for competing countries pose new challenges to India’s cotton and textile sector through tariff disadvantages and potential trade diversion. To remain competitive, India must strengthen trade engagement with key markets, reduce production and logistics costs, expand man-made fibre and technical textile capacity, promote sustainable and traceable cotton, and diversify export destinations. A coordinated push toward scale, value addition, and policy support will be essential to build a resilient, future-ready textile ecosystem and sustain India’s position in global supply chains.
Click to View MoreA weaker rupee may boost export prices in the short run, but India’s long-term trade gains depend more on productivity, innovation, infrastructure and skilled labour. While depreciation can temporarily ease the trade gap, it also raises import costs, fuels inflation and risks capital flight in an import-dependent economy. Sustainable competitiveness therefore lies in strengthening real economic capabilities, supported by targeted policy measures such as incentives for exporters, attracting dollar inflows and stabilising forex markets.
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